AVGO dominated the options tape Friday after shares sank 12%. The $285 billion valuation wipeout — one of the largest on record — followed a disappointing revenue outlook. Put activity spiked across near-term expiries, with June 5, June 8, and June 18 contracts all seeing heavy traffic.
Options expiries for AVGO extend well into August, giving traders room to position for a prolonged recovery or further downside. The ORTEX stock score for Broadcom actually ticked higher to 79.4, even as the stock crashed. That quality-momentum divergence signals some traders are eyeing dip-buying via call spreads.
NVDA options remain in sharp focus too. Its market cap stands at $5.3 trillion. Sentiment-watchers note the dense expiry calendar running through September. Traders are hedging AI exposure broadly after Broadcom's miss rattled confidence.
Meanwhile, crypto volatility is driving unusual flows in COIN. Short interest sits at 11.4% of free float. Availability is 327%, meaning plenty of borrow exists for fresh short positions. Put activity has risen as Bitcoin tumbles toward its biggest weekly loss since November 2022.
Hedge funds are also actively using options to bet against call-centre stocks. The AI disruption narrative is sharpening. Markets are pricing in clean, fast disruption rather than a gradual transition — and the options market is reflecting that bearish shift in real time.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
